Overseas Mortages
If you are interested in purchasing a property abroad there
are usually three options for financing. The first and
easiest is to pay cash. Many people either don't have the
cash in hand to do this, or prefer to spread the payments
out over a longer period of time with a mortgage. If going
this route, you can get a mortgage in your home country
based on the equity in your current home or property. An
increasing number of foreign purchasers, though, are
financing with a mortgage in the country of their purchase.
When obtaining a mortgage in your home country, you only
have to worry about the exchange rate at the time of
purchase. After the payment to the seller, all your
payments will be in your usual currency to a bank located
in your country. Depending on the exchange rate at the time
of purchase, this can be a great deal for you. Whether or
not you choose to do this also depends on the banking
system in your country of purchase.
If you want to finance your foreign property with an
overseas mortgage, there a few things to be aware of. Many
countries have modern banking systems that allow for
extended mortgages of anywhere from 20-30 years. You can
apply for and obtain a mortgage in these countries, and the
process is often fairly straightforward. Some countries
still do not have a banking system that can handle
mortgages, while some don't allow overseas and long-term
mortgages. It is important to check into the situation in a
country before beginning the search process so that you
will know how best to proceed.
Fluctuating currency rates are the main concern when
financing abroad. These rates will affect how much you have
to pay in your home currency. If you have to transfer funds
regularly from the UK or other European country to a
foreign bank, you will have to have your money exchanged
into that of the destination currency. If, on the other
hand, you are earning income within the country of
purchase, such as from rental property, it is easy to keep
it in that country and pay the bank directly.
Take the uncertainty away by using a currency specialist
When buying property abroad , making regular payments
overseas or other overseas money transactions it is
important to receive specialist currency advice. This will
allow you to obtain the best foreign currency exchange
rates. We all want to make our money go further you do not
have to be at the mercy of the money markets or the banks.
Overseas mortgages are a specialised field and it is an
area that requires sound independent advice. The overseas
buyer has options to make and these are best examined with
an independent financial advisor with expertise in the area
of overseas property.
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Nicholas Marr is a lifetime property investor and CEO of
Marr International Ltd a UK based property marketing
company that is responsible for one of the worlds leading
international real estate web site at
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